Why or why not? If they should be changed, how? Problems: Yes they should be changed because the current processes will only generate a lot of inaccuracies in the inventory and documentations. Current inventory and purchasing process allows for inventory to go missing, late payments to suppliers as well as mismatched receiving of invoices with purchase orders. No proper tracking and accounting of inventory is possible.
(1) Prejudicial exemption and public information－J.P. Morgan concerns that the ED doesn’t make clear exemption from disclosing information that may do harm to companies. (2) Attorney-client privilege－J.P. Morgan thinks that the existing disclosing requirement of claim amounts is generally appropriate. Too much additional information of claim amounts would allow the opposing parties to use this information and waive attorney-client privileges.
Also Wal-Mart operates on a high volume low profit margin and the only way to do this is to be able to mass produce or have your product mass produced for you or buy in bulk. In evaluating Sears prices which are higher they still mass produced items which they believe will appeal to the general public. Another reason for Sears or Wal-Mart not to be effective in creating a trendy counterculture image is that it would not be cost effective and they wouldn’t be able to keep up with the changing styles and trends. Sears and Wal-Mart cannot create a counterculture image but they could definitely capitalize on a trend if it fits into the established core of their brand. Also Sears and Wal-Mart may not want to for fear of losing the current core customers they already have established.
a) Citibank is correct in shifting from a strictly financial based evaluation system to one that includes non-financial measures. Although the new performance scorecard includes a customer satisfaction section, the current method of evaluating customer service poorly designed and is inconsistent with a properly balanced scorecard. As it currently stands, measuring customer satisfaction across all clientele is too broad. The needs of the patrons vary substantially and generic questions in the telephone interviews will not suffice. Instead there should be questions geared towards business customers and a different set of questions for individual customers.
Amazon created value for customers early on by providing a space for customers to purchase a large variety of books in one place, thereby reducing the customers product search drastically from the traditional method of going to brick & mortar book stores. In the early stages, Amazon benefitted from the first mover advantage, and had a dominating market share. This attracted huge investment capital in the late 1990s, and Amazon used this capital to broaden its offerings in order to stay on top of emerging competitors. In 1996, Amazon focused on making the shopping experience on Amazon.com better for its customers. It revved up its browsing and search capabilities, and personalized the whole experience by offering customized layouts and recommendations based on what you had been looking at and purchasing.
However, the company doesn’t provide strategy to support its plan to realize more units. There are no clear marketing policy and allocation of resources to bolster economic growth on the factory and advertisement campaign. Therefore, this is should be re-considered and adjust to realistic goals. Schedule of cash receipts The company planed its budget based on projected sales in units. It is noted that company calculated cash receipts from collection based on total budgeted revenue, however as it said before the number of projected units to sell may not be realistic to support these numbers as well as to collect the cash.
AMERITRADE COST OF CAPITAL ANALYSIS Questions: 1. What factors should Ameritrade management consider when evaluating the proposed advertising program and technology upgrades? Why? Ameritrade management should consider the opportunity cost of capital for the proposed advertising program and technology upgrades. It is important that Ameritrade not emphasize it’s company cost of capital, which is the opportunity cost of capital for investment in all the firm’s assets, and therefore becomes problematic if the firm is looking at a new project/asset (because most likely this new project will be more/less risky than the firm’s exist business).
Wal-Mart’s sales were growing, and that meant that Target’s sales would go down since consumers preferred Wal-Mart for Target. The inability of Target’s managers to identify a solution to the problem of dropping sales and develop a viable course of action also affected Target’s performance. Another micro environmental factor was the thriftiness of customers all over America, which endeared them to Wal-Mart. The impatience of Target’s shareholders and the pressure they exerted on the company’s board to deliver was also a major factor. The marketing strategies that were adopted by the management also failed to turn things around.
Wal-Mart’s sales were growing, and that meant that Target’s sales would go down since consumers preferred Wal-Mart for Target. The inability of Target’s managers to identify a solution to the problem of dropping sales and develop a viable course of action also affected Target’s performance. Another micro environmental factor was the thriftiness of customers all over America, which endeared them to Wal-Mart. The impatience of Target’s shareholders and the pressure they exerted on the company’s board to deliver was also a major factor. The marketing strategies that were adopted by the management also failed to turn things around.
The management of the different subsidiaries were organised geographically, so big decisions where usually taken on a country to country basis. Their subsidiaries acted independently of one another and don’t act in a manner that is most beneficial for the firm. For example, they take significant time to resolve disputes and in many cases Behm was the only one able to solve them. This time costs money, especially if clients or potential clients become discouraged from purchasing Corning resources. Furthermore, Forrest Behm needs time for coordinating the international markets and the actions of the subsidiaries takes time from his ability to do this.